Top 5 Upgrades: Baird upgraded Starbucks$Starbucks (SBUX.US)$to Outperform from Neutral with a price target of $110, up from $81. The firm sees a more favorable risk/reward on Starbucks shares following the hiring of Brian Niccol as CEO. Barclays upgraded Dell Technologies$Dell Technologies (DELL.US)$to Equal Weight from Underweight with an unchanged price target of $97. The firm says much of the artificial intelligence "hype" ...
Despite Gartner's high beta and current high price, the market's positive outlook is encouraging, suggesting future opportunities to buy at a lower price.
Gartner's ROCE growth suggests full benefits from past investments. High current liabilities to total assets ratio indicates reliance on short-term creditors, posing risks. Exceptional stock performance over the last five years reflects these patterns.
The recent insider sale of Gartner shares, even below the current price, is seen as a negative sign. The lack of insider purchases over the last year is discomforting, yet the high insider ownership could suggest the company's interest in all shareholders.
Despite impressive EPS growth, market enthusiasm for the stock appears to be waning. However, with a one-year total shareholder return of 33%, outperforming the five-year return of 26% per year, the stock's strong momentum may warrant a closer look.
Ranjit Atwal, Gartner's senior director analyst, predicts that the widespread adoption of on-device GenAI capabilities and AI processors could pose differentiation challenges for tech vendors. He also suggests that GenAI smartphones won't boost demand until 2027, as users are unlikely to pay a premium without groundbreaking applications.
Gartner suggests 'change fatigue' may cause CIOs to hesitate in signing new contracts or committing to long-term initiatives. The firm also believes generative AI won't significantly impact IT spending.
The PC industry, which experienced its lowest sales in 17 years in 2023, is now showing signs of a potential recovery. Preliminary results from$Gartner (IT.US)$indicate that the PC shipments have recorded a growth in the fourth quarter of 2023, marking the first time in eight consecutive quarters. During the quarter, the industry managed to ship a total of 63.3 million units, marking a modest 0.3% increase from the corresponding...
Analysts express discomfort with Gartner's high P/E amidst forecasted earnings decline. Investors' positive sentiment may not sustain the high P/E, risking shareholders' investments. Investors could face overpaying premium.
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